Austria: Economic growth remains robust but signs of slowdown begin to show
July 28, 2011
The Austrian economy is showing signs of cooling as the external sector loses momentum. In April, exports grew 10.9% over the same month last year, which was well below the 19.2% expansion observed in March and marked the slowest pace in over a year. The deceleration in export growth contrasts buoyant growth in Germany, which is Austria's main export destination. Meanwhile, imports decelerated from an 18.5% expansion in March to a 12.2% increase in April, suggesting that domestic demand is also weakening. Less dynamic external demand also appears to dampen industrial production. In May, industrial output expanded a working-day adjusted 6.7% over the same month last year, which was below the 9.3% increase registered in April and represented the slowest pace since December of 2010. As a result of the monthly slowdown, the trend continues to point downwards, with annual average growth in industrial production inching down from 7.1% in April to 7.0% in May.
Author: Ricardo Aceves, Senior Economist